Reliance Q4 results: Net profit up 2.4% at ₹19,407 cr, beats estimates

Business Standard

25-04-2025

Beating analyst estimates, oil-retail-telecom conglomerate Reliance Industries (RIL) on Friday reported a 2.4 per cent year-on-year (Y-o-Y) rise in its consolidated net profit (attributable to the owners) at ₹19,407 crore for the fourth quarter of the financial year ended March 2025 (Q4FY25). The performance was driven by its consumer-facing business (retail and telecom), but its oil-to-chemicals (O2C) division remained under pressure.
The company also said it had become the first Indian corporate entity to post a net-worth exceeding ₹10 trillion.
India's most valuable company posted a 3.6 per cent increase in consolidated profit before interest, depreciation and taxes (PBIDT), at ₹48,737 crore, while revenue for the March quarter climbed 10.5 per cent Y-o-Y to ₹2,61,388 crore.
A Bloomberg poll of 11 analysts had pegged consolidated net adjusted income at ₹18,471 crore, with 18 analysts forecasting revenue of ₹2,40,800 crore. Sequentially, RIL's net profit was up 4.7 per cent, with revenue rising 8.9 per cent.
On a standalone basis, which primarily reflects the Mukesh Ambani-led firm's O2C operations, net profit was down 0.6 per cent Y-o-Y at ₹11,217 crore, while revenue slipped 9.4 per cent to ₹1,32,962 crore in the period under review.
'The financial year 2024-25 had been a challenging year for the global business environment with weak macroeconomic conditions and a shifting geo-political landscape. Our focus on operational discipline, customer-centric innovation, and fulfilling India's growth requirements helped Reliance deliver a steady financial performance during the year,' said Mukesh Ambani, chairman and managing director of RIL in a statement.
For the full financial year 2024-25, RIL reported record consolidated revenue of ₹9,64,693 crore, up 7.1 per cent Y-o-Y, aided by strong contributions from its consumer businesses and O2C. Consolidated net profit attributable to owners was largely flat at ₹69,648 crore, compared to ₹69,621 crore in FY24.
Ambani said the O2C segment delivered a 'resilient' performance amid significant volatility in global energy markets. 'Significant demand-supply imbalances in downstream chemicals markets have led to multi-year low margins,' he said. 'Our business teams ensured optimisation of integrated operations and feedstock costs to enhance margin capture across value chains. The oil & gas business recorded its highest ever annual Ebitda (earnings before interest, taxes, depreciation, and amortisation) led by higher production from our KGD6 and CBM blocks.'
In the retail segment, Reliance Retail Ventures Ltd reported a 30.4 per cent jump in net profit at ₹3,519 crore for the January–March quarter, with Ebitda from operations rising 14.6 per cent to ₹6,510 crore. Revenue from operations stood at ₹78,622 crore, up 16.3 per cent Y-o-Y, while gross revenue climbed 15.7 per cent to ₹88,620 crore.
Sequentially, revenue from operations dipped 1.2 per cent, though net profit inched up by 1 per cent. The company opened 1,085 new outlets during the quarter, taking its total store count to 19,340 across 77.4 million sq ft of retail space.
Gross revenue from Reliance Retail in FY25 was ₹3,30,870 crore, up 7.9 per cent from the previous year. Depreciation for the March quarter was down 3.4 per cent Y-o-Y at ₹1,402 crore, while finance costs remained largely flat. The business continued to expand its digital and new commerce platforms, which now account for 18 per cent of total revenue.
Jio Platforms Ltd (JPL), the holding company for Reliance Jio and other digital assets, posted a 25.8 per cent Y-o-Y rise in net profit at ₹7,023 crore for Q4FY25, driven by higher telecom tariffs introduced in July. Sequentially, net profit rose 2.4 per cent.
Jio maintained momentum in net profit growth, building on gains of 26 per cent, 23.4 per cent, 11.7 per cent and 12 per cent across the previous four quarters. Average Revenue Per User (Arpu) per month rose to ₹206.2 in Q4, up from ₹203.3 in the preceding quarter. Arpu in Q2 had reversed a four-month slump by rising to ₹191.5. Year-on-year, Arpu in Q4 was up 13.4 per cent.
Ambani said the retail segment had demonstrated consistent growth through the year. 'In FY25, the business focused on a strategic recalibration of our store network, aimed at improving operational efficiencies and long-term sustainability,' he said. 'Our enhanced product catalogue and user experience across all formats strengthened customer engagement. The quick hyperlocal deliveries initiative has also gained significant traction in the market, connecting strongly with the users.'
The RIL's chairman and managing director further said the digital services arm had achieved record revenues and profits, supported by a growing subscriber base and improved user engagement. 'Strong adoption of our 5G services and our home broadband offerings continues with accelerated addition in subscribers and in the number of home-connects,' he said.
About the conglomerate's new business, Ambani said that during FY25, RIL laid a strong foundation for 'our projects in renewable energy and battery operations'.
'In the coming quarters, we will see the transition of this business from incubation to operationalisation,' he added
RIL's net debt as of March 2025 was recorded at ₹1,17,083 crore, marginally higher than ₹1,16,281 crore a year ago. Net debt-to-Ebitda stayed steady at 0.60 times Y-o-Y. Capital expenditure also continued at a steady rate of ₹36,041 crore for the reporting quarter. Finance costs increased by 6.8 per cent Y-o-Y to ₹6,155 crore but a tad lower sequentially.
The conglomerate's O2C business posted a 15.4 per cent Y-o-Y rise in segment revenue at ₹164,613 crore, but Ebitda for the segment was down 10 per cent Y-o-Y at ₹15,080 crore.
Ahead of the Q4 results that were announced post-market hours, shares of RIL closed at ₹1,300.05 apiece (down 0.12 per cent) on the BSE on Friday; the Sensex was down 0.74 per cent at 79,212.53.